Is real demand back in the market? The most recent survey by the Mortgage Bankers Association shows this may be the case. Mortgage purchase applications rose for the first time in 5 weeks, up 3.4% from levels not seen since 1996. This is likely a combination of record low interest rates and new demand, which up until now had been removed from the market (due to the tax credit).
Investors might start again seeing competition from primary occupants seeking homes with interest rates too good to pass up. More than likely we’ll see continued volatility in the Index over the upcoming months and the market seeks footing.
- Ryan Hinricher, Founder, Senior Housing Analyst
